De Minimus Self-Employed Borrower
Borrower who earns less than 5 percent of total stable monthly income from self-employed business income.

Dealer Charges
Charges for extra services or products sold by the dealer, including rust proofing, undercoating and extended warranties.

Dealer Holdback
An allowance, usually between 2 and 3 percent of MSRP, which manufacturers provide dealers, frequently as a credit to the dealer's account. A holdback allowance may allow the dealer to pay the manufacturer less than the invoiced amount. Therefore, the vehicle could be sold to you at cost while permitting the dealer to receive a small profit. Holdback is also known as a pack.

Dealer Incentives
Programs offered by manufacturers to increase the sales of slow-selling models or to reduce excess inventories. Dealers may elect to pass on the savings to the buyer. Often, the dealer gives the buyer a choice of a special dealer finance rate or a manufacturer's rebate. In many cases, the rebate will be a better deal.

Dealer Invoic
The amount which dealers are invoiced or billed by the manufacturer for a vehicle and any optional accessories.

Dealer Sticker Price
The Monroney sticker price plus the suggested retail price of dealer-installed options, dealer preparation, and undercoating.

Dealership
A company authorized by a manufacturer to sell that manufacturer's products.

Death Benefit
The amount of money the beneficiary is paid under an insurance policy when the insured person dies, less any outstanding loans against the policy. Also called the principal sum or survivor benefit.

Debit Card (EFT Card)
A plastic card, looks similar to a credit card, that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers.

Debt
An amount of money owed by one person, company, organization or other entity to another.

Deductible
The amount of a claim you pay out-of-pocket before the insurance company assumes the expenses. The deductible is typically a fixed dollar amount (e.g. $250).

Deed
A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. (See also deed of trust.

Deed of Trust
In many states, this document is used in place of a mortgage to secure the payment of a note.
Default Failure to repay a loan or otherwise meet the terms of your credit agreement.

Deferred Interest
Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of deffering your interest is that the buyer ends up owing more than the original amount of the loan. Also called Negative Amortization.

Delinquency
Failure to make payments on time. This can lead to foreclosure.

Department of Veterans Affairs (VA)
An independent agency of the federal government which guarantees long-term, low- or no-down payment mortgages to eligible veterans.

Depreciation
Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.

Depreciation Fee or Charge
A component of the monthly lease payment that accounts for the value the car loses during the term of the lease. Depreciation is the difference between the vehicle's list price and the projected residual value at the end of the lease. This figure, divided by the number of months in the lease, determing one part of the monthly fee; the lease charge is the other.

Destination Charge
The fee charged for shipping, freight, or delivery of the vehicle to the dealer from the manufacturer or port of entry. This charge is to be passed on to the buyer without any markup.
Disclosures Information that must be given to consumers about their financial dealings.

Discount Points
Additional points you can pay a lender to lower the interest rate on your loan at closing. Each point is equal to 1 percent of the loan amount (e.g. two points on a $100,000 mortgage would cost $2,000). Also referred to as Points.

Documentary Stamps
A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State.
Documentation A list of documents you will be required to provide when submitting a loan application. The required documents range from w2's to a signed sales contract.

Documentation Class
Category determined by Loan Prospector to indicate the minimum level of documentation you must obtain to underwrite the loan. The three possible classes are: Accept Plus, Accept and Caution.

Down Payment
The difference between the loan amount and the purchase price, usually paid immediately upon purchase with cash or a trade-in.

Down Payment and Fees
Money paid to make up the difference between the purchase price and mortgage amount plus the closing cost fees to close the loan.

Due-On-Sale Clause
A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.

Duplex
A dwelling divided into two separate living units, either side-by-side with a common wall or one above the other.

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